Crucial Exams

Multistate Professional Responsibility Exam Practice Question

An attorney is representing a consumer who received settlement funds from a breach-of-service contract lawsuit. A third party claims a percentage of those funds based on a prior agreement with the client. The client demands full disbursement to them, while the third party has notified the attorney of a disagreement over ownership. Which approach best reflects the attorney’s responsibility to both parties under professional ethics guidelines?

  • Release the entire settlement to your client

  • Distribute a portion of the funds to the client while addressing the third party’s demands

  • Maintain the disputed portion in a trust account and distribute the remainder to the client

  • Forward the disputed amount to the third party and allocate the remainder to the client

Multistate Professional Responsibility Exam
Safekeeping funds and other property
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